Japan Exchange Group (8697) Q4 2025 earnings summary

Executive summary

• Operating revenue rose 6.1% year-over-year to JPY 162.2 billion, driven by higher cash equity trading and increased listing and information services revenue.

• Operating income increased 3.1% year-over-year to JPY 90.1 billion, and net income attributable to owners grew 0.4% to JPY 61.1 billion.

• Growth was supported by higher trading, clearing, listing, and information services revenues, with trading services revenue up 4.8% and listing services revenue up 11.0%.

• ROE reached 18.3%, consistently exceeding the cost of equity and surpassing the 18% target.

• A 2-for-1 stock split was conducted on October 1, 2024, affecting per-share calculations.

Financial highlights

• Operating revenue: JPY 162.2 billion (+6.1% YoY); operating income: JPY 90.1 billion (+3.1% YoY); net income: JPY 61.1 billion (+0.4% YoY).

• EBITDA rose 2.8% year-over-year to JPY 108.8 billion.

• Cash equities average daily trading value grew 14.1% year-over-year to JPY 5.7 trillion.

• Number of IPOs at TSE was 121, down from 131 in the previous year.

• Cash and cash equivalents at year-end: JPY 98.4 billion, down JPY 29.6 billion from prior year.

Outlook and guidance

• FY2025 operating revenue forecasted to decrease 0.8% year-over-year, with operating expenses expected to rise 5.2%.

• Operating income projected to decline 8.5% and net income to fall 9.2% year-over-year.

• Ordinary dividend forecasted at JPY 43 per share, with a payout ratio of 80.6%.

• Share buyback of up to JPY 20 billion planned, targeting a total return ratio of approximately 116%.

• Average daily trading value of cash equities assumed at JPY 5 trillion for FY2025.